U-46 will explore options before asking for tax hike

By Tara Malone Daily Herald Staff Writer
Posted Wednesday, April 21, 2004

The "r" word echoed once again through Elgin Area School District U-46 this week.

Faced with an $8.4 million debt in its operations and maintenance fund that could balloon to $67.7 million within the next five years, district board members on Monday night discussed whether to ask homeowners to pay more taxes come November.

No official decision was made.

Nor will one be until the district tightens its financial belt another notch, if possible, Chief Financial Officer John Prince said.

"A referendum is the last option, not the first or second," Prince said. "It's not fair to ask that question of the public until we do everything in our power to lower costs and reduce the deficit."

To help them do that, district officials recruited an independent firm to review its facilities, grounds and maintenance operation with an eye on shaving expenses. U-46 will pay $42,875 for the project that will be completed by June.

The Elgin-based district spans 5 million square feet, 53 schools and 830 acres.

Despite its size, shaving maintenance costs may be difficult as administrators trimmed away any excess last year as part of a $40 million budget cut. Lowering heat and air-conditioning costs shaved $300,000, for instance. Staggered cleaning shifts helped pare down the custodial staff.

"I think this is going to be tough, I really do," Prince said.

What could bring some relief to the swelling operations and maintenance debt may be the better budgeting for building upkeep.

Prince said the district may use life-safety bonds to cover the cost of repairing school roofs, fixing windows, building parking lots or rewiring electrical systems. The sale of such bonds does not require voter approval.

If the two-punch combination of life-safety bonds and a cost-saving study does not improve the financial health of the operations and maintenance fund, then talk of referendums and tax hikes will be inevitable, Prince said.

Taxpayers rejected the district's last two bids for a 37.5 cent tax increase to the operations and maintenance fund.

By ensuring "no stone goes unturned," district leaders hope to make a strong case for a possible referendum.

"Running a deficit, at least in my mind, is not acceptable," board member Robert Wise said. "It will have to be addressed somewhere."